Gift package firms, florists avoid wrap-up in downturn

By Lila Fitri Aly

JAKARTA (JP): The government's liquidation of 16 banks also kissed goodbye a bountiful source of revenue for one shocked gift package company owner.

Fahira Idris, owner of Nabila Parcel in Pejaten, South Jakarta, said all the closed banks were her clients.

"One bank would order some 200 packages on special occasions," she said.

Fahira knew she was only one of many gift package companies, which started swelling in number here in the 1980s, vying to keep customers and find new ones in the downturn.

She got over her panic and began to make plans. She conducted an informal survey of 200 prospective clients, aiming to collect an accurate picture of how they viewed the gifts and what she could do to ensure orders did not dry up.

Particularly important was the response to whether gifts were considered luxury expenditures.

"Surprisingly, what I understood (from the response) was totally different," said Fahira, daughter of noted businessman Fahmi Idris.

"In fact, companies consider gift packages primary items, not a mere unavoidable social cost.

"They think sending gifts is one way to express their deepest feelings of gratitude to customers."

They were a once-a-year opportunity, "a sacred moment to maintain a good relationship".

She added: "It is too hard to sacrifice a good and long relationship" even in an economic crisis."

Companies would not cut down cost of their gift sending, but would be more selective about prices.

Fahira responded by cutting prices by up to 40 percent while attempting to keep constant the number of items in her packages.

"Last year the highest price for my creation (package) was Rp 5 million, now it's only Rp 2 million," said Fahira, whose client list has 1,000 individuals and corporates.

Suhaenah, a supervisor at Familia Young Studio in Pondok Indah, said people usually ordered gift packages from her firm by Dec. 10 at the latest, but this year was different.

"Dec. 20 is usually the peak of our activity ... we have a long line here."

"But this year most people only started ordering on Dec. 20," said Suhaenah in the quiet store.

Sales have been halved, she added. "Today people are ... being very selective."

Familia is not raising prices, she said, as they were set several months ago, but is also unable to mark them down.

"But we can't reduce prices, they're as low as possible now," she added. Packages at Familia are priced up to Rp 600,000.

Florists have also been hard hit as businesses watch their budgets.

Ohen Suharna of the Hortensia florist in the popular Kebayoran Baru flower center of Barito checked on several of his clients who had not made orders this year.

"This year we're only sending cards," was their response.

Ohen and his colleagues have reduced their purchase of flower cuts, and some workers have been put on leave. He now has only eight of his 11 permanent staff and several casual workers.

He fears business around the Idul Fitri holiday will be similarly slow. Like the gift package business, florists are usually run off their feet around Dec. 20.

"I wouldn't be giving an interview ... my phone would be ringing every five minutes," Ohen said.

Last year, an average 30 flower arrangements were sold daily, but "now we're only selling three", he added.

Sari Narulita, owner of the Flower World florist and an editor at Kosmopolitan magazine, believes business has dropped by more than 50 percent.

Imported flower seeds have increased in price by at least 30 percent.

"The flower nurseries have experienced the long and dry season, plus the economic crisis," she said.

Nevertheless, everyone must try to be upbeat, and remember friends in bad as well as good times.

"I still send customers fruit parcels," Ohen said.